Starwood Property Trust, a Greenwich, Conn., commercial real estate finance company, has obtained two new lines of credit totaling $275 million. These are in addition to a $350 million financing facility the company received back in August.
The first new line is a warehouse financing facility from Goldman Sachs Mortgage Co., for $150 million. A regulatory filing from Starwood describes the line as a master repurchase agreement to finance the acquisition or origination of commercial mortgage loans.
Advances accrue interest at the 30-day Libor plus a margin of between 1.95% and 2.25% depending on the loan-to-value ratio of the purchased mortgage loan. This line matures on Dec. 3, 2012.
The other new financing is an asset-based credit agreement for $125 million from Bank of America. The facility is set to expire at the end of November 2013, with the option to extend it one year. There is also an option to increase the amount available to $150 million for Starwood to purchase additional assets.
Starwood has already drawn on the $125 million line to provide funding for a $205 million first mortgage secured by the assets of a worldwide operator of hotels, resorts and timeshare properties.
Advances can accrue interest at a per annum rate based on either Libor or a base rate, at Starwood's choice. The margin can vary between 2.35% and 2.50% over Libor, and between 1.35% and 1.50% over base rate, based on the performance of the assets. Starwood said its expected return on the investment is in excess of 12%.
